Surplus

What Are Surplus Funds in Foreclosure?

Surplus funds, in the context of foreclosure, refer to money left over after a property is sold at a foreclosure auction.

How It Works

Foreclosure Sale

When a homeowner can’t pay their mortgage or property taxes, the lender may foreclose on the property and sell it at auction to recover the owed amount.

Paying Off the Debt

The money from the sale is first used to pay off what the homeowner owes to the lender, including the remaining mortgage balance, fees, and legal costs.

Surplus Funds

If the property sells for more than what is owed, the extra money (the surplus) is available to the previous homeowner. For example, if the home sells for $200,000 and the debt was only $150,000, the $50,000 difference is surplus.

Who Gets the Surplus?

The former homeowner is entitled to these surplus funds. However, many people don’t realize they have this money waiting for them, or they don’t know how to claim it.

How We Help

Paid In Equity Consulting specializes in helping individuals who’ve gone through foreclosure recover these surplus funds by shouldering the entire claim. We handle the process of tracking down the money and ensure it’s returned to the rightful owner.